Region in transition -The case of Akureyri region- Stefanía Steinsdóttir Project manager Akureyri region Business Agency Akureyri, "the capital of Northern Iceland and surrounding region The largest and most populated area in Iceland outside the capital Reykjavík Located in the centre of Northern Iceland Akureyri region is located at the largest fjord in Iceland, Eyjafjörður 9 municipalities with total of 24.500 inhabitants Akureyri city is the largest with 17.500 inhabitants. 1
25000 Inhabitants in the Akureyri region 1998-2009 24500 24000 23500 23000 22500 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Akureyri Region Business Agency (AFE) Owned and operated by the Akureyri region municipalities Partly financed through the Institute for Regional Development in Iceland (Byggðastofnun) It s role is to increase the region s competitiveness, quality of life and overall attractiveness AFE assists local companies in analyzing and finding new markets and opportunities AFE s mission is to find potential investors into the Akureyri region 2
Region in transition During the 20 th century Akureyri was termed the manufacturing town of Iceland Major changes in the local economy stem from the establishment of the University of Akureyri in 1987. Found its competitive edge in education and diverse services of the knowledge economy of today. The University of Akureyri has since 1987 grown very rapidly and is an important sector for the local economy. University of Akureyri (UNAK) Basic Profile Provides academic and professional education which takes in account the needs of society Number of students is around 1700 Number of employees are 208, part-time teachers are approximately 500 Is second of Icelandic universities in terms of research activities 3
UNAK has grown rapidly since 1987 2000 Number of students in UNAK 1987-2008 1800 1600 1400 1200 1000 800 600 400 200 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 University of Akureyri Faculties Faculty of Health Sciences (nursing, occupational therapy) Faculty of Business and Science (business administration, fisheries science, biotechnology etc.) Faculty of Humanities and Social Sciences (teacher education, law, social sciences etc.) 4
Proportion of distance and on-site students 100% 90% 80% 70% 60% 80% 72% 68% 64% 62% 65% 64% 68% 67% 50% 40% 30% 20% 10% 20% 28% 32% 36% 38% 35% 36% 32% 33% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 Distance On-Site Qualified people into the economy from UNAK few examples The rate of qualified teachers in kindergartens in Akureyri increased from nearly 40% in 1999 up to almost 80% in 2008 The rate of qualified teachers in Primary schools in Akureyri increased from about 60% in 1996 up to more than 95% in 2009 Research has shown that it is significantly more likely that nurses stay in the region than if they pursue studies in University of Iceland. Graduates from business adminstration and fishery sciences have significantly contributed to increased professionalism in companies in the Akureyri region 5
Where graduated students live and work after finishing UNAK 49% in the Akureyri Region 25% in the capital area 26% in areas outside Akureyri and Reykjavik 1 49% 3 26% 2 25% Research spin-offs Research in energy biotechnology and marine microbiology has during last year created more than 20 jobs for skilled people in Akureyri 6
University of Akureyri: A few general impacts Better study opportunities in the region and a higher education level Higher earnings potential Improved promotion possibilities More support for scientific research More appealing living conditions More diversity for people with university degree Generally, many opportunities and characteristics in the region are similar to the capital region but in a smaller scale Objectives of the Akureyri region Growth Agreement 2004-2007 (ARGA I) Enhance the Akureyri region as a popular place to live in Stimulate the region s population increase Raise the region s competitiveness and nurture economic growth Develop and strengthen the region s growth sectors Increase the number of competitive companies and jobs, augmenting the supply of products and services Exploit the possibilities created by taking part in international projects Attract international investment and knowledge 7
Planning of ARGA I AFE Directors negotiate with AFE on implementation of Growth Agreement Board (10) Executive committee (5) Directors elect a 5 person executive committee. Þorsteinn Gunnarsson chairman of board of directors and executive committee Area s industrial strengths AFE negotiates with University institutes and others, e.g. with regard to control and supervision of individual clusters with the Growth Agreement Iceland Tourism Centre and MFN UNAK RHA Project manager Project managers in charge of forming a lead group formulates policy - prioritises work plans the face of the cluster Tourism cluster Health cluster Education and research cluster Tourism Health sector Research Institute. UNAK Food Centre Food cluster Food Institute RES - The School for Renewable Energy Science One-year intensive international M.Sc programme in environmentally friendly energy use www.res.is RES target groups are primarily: Students holding B.Sc. degree with top grades in engineering or physical/ natural science (chemistry, physics, geology and related fields) Second master in renewable energy science And/or using RES as a part of their Ph.D. studies at their home institute. 8
Akureyri Region Growth agreement 2008-2010 (ARGA II) The main objective of the present Growth Agreement is to promote innovation and increase economic growth in the region with active triple-helix co-operation The criteria for funding in the ARGA II 2008-2010 : Cooperation between at least two factors, lead by a private company Emphasis on Research and development Marketing is important Outreach; projects should aim at marketing and export Growth; projects shall aim at innovation and growth in the region Similar to project funds, but with more support. To sum up The University of Akureyri, UNAK has proved to be immensly important for the town of Akureyri and the region in general The university came at just the right moment in times of structural change in the economy Higher education level, more diversity of jobs for educated persons, better access to educated people for the economy, adds an important flavour to the town and region Growth Agreement and the existence of UNAK were important for long term projects such as RES - School for Renewable Energy Science 9